Risk Management Concepts You Must Pass in the ACI Exam

Risk management is heavily tested and often underestimated.

Market risk, credit risk, liquidity risk and operational risk must be clearly distinguished.

Tools such as VaR, limits and stress testing appear frequently.

These sections reward clarity, not calculation.

Liquidity risk refers to:

A. Default risk

B. Market volatility

C. Inability to fund or exit positions

D. Operational failure

✅ Answer: C